MDL's Mega Sub Deal

Aaj Ka Bazaar

The US market ended narrowly mixed on Friday as semiconductor shares slumped for a second day. Data showed that US business activity had risen to a 26-month high in June, causing Treasury yields to rise. However, new reports revealed that existing home sales fell for a third straight month in May, and the leading indicators for the US economy declined for the third month. Asian markets were broadly lower this morning, though Japan's Nikkei average edged up slightly after the country's top currency official told reporters that officials are ready to interfere to support the yen 24 hours a day if needed. ?Indian market looks set to open a tad lower on Monday, with expectations around the upcoming Budget and the reshuffle of the S&P BSE Sensex likely to bring in stock-specific action. Fertilizer stocks could be in action after the GST council referred a recommendation on exempting the fertilizer sector from the current 5% GST to the Group of Ministers on rate rationalization.

Markets Around Us?

BSE Sensex - 77,048.95 (-0.22%)

Nifty 50 - 23,445.00 (-0.24%)

Bank Nifty - 51,305.55 (-0.69%)

Dow Jones - 39,090.99 (-0.16%)

Nasdaq - 17,689.36 (-0.18%)

FTSE - 8,232.72 (-0.42%)

Nikkei 225 - 38,867.38 (0.70%)

Hang Seng - 17,844.89 (-1.03%)

Sector: Defence

Mazagaon Dock eyes Rs 35,000 cr deal

Mazagaon Dockyard Limited (MDL) is in advanced talks with the Indian Defence Ministry for a Rs 35,000-crore deal to acquire three new Kalvari-class submarines. These submarines will be larger and more advanced than their predecessors, featuring modern electronics and improved propulsion, allowing for longer missions. MDL's proposal includes at least 60% indigenous content, boosting local suppliers and MSMEs. The deal could create around 5,000 jobs and ensure significant technology transfer for future projects. MDL, currently building Kalvari submarines under Project 75, aims to deliver these additional submarines within six years, addressing the Navy's urgent need for conventional submarines as their current fleet ages.

Why it Matters:

This deal represents a significant opportunity for MDL, promising revenue growth, technological advancement, and enhanced market positioning, making it an attractive proposition for investors.

NIFTY 50 GAINERS

M&M - 2,887.15?(1.66%)

POWERGRID - 331.10?(1.58%)

SUNPHARMA - 1,489.55?(1.52%)

NIFTY 50 LOSERS

INDUSINDBK - 1,483.00?(-2.89%)

TATASTEEL - 176.26?(-2.05%)

CIPLA - 1,510.05?(-2.04%)

Sector: Pharmaceuticals

Lupin and Aurobindo Pharma recalls product from the US market

Drugmakers Lupin and Aurobindo Pharma's subsidiary Eugia are recalling products from the U.S. market due to manufacturing issues, according to the US FDA. Lupin is recalling 3,552 bottles of Cefixime for Oral Suspension, used to treat bacterial infections, because it failed content uniformity tests. The recall began on May 30. Eugia is recalling 70,125 vials of Dexamethasone Sodium Phosphate injection and 15,500 vials of Eptifibatide injection due to impurities and degradation. These recalls, initiated on May 23 and May 22 respectively, are classified as Class II and Class III, meaning they pose low to moderate health risks. India is a major supplier of generic medicines globally, with numerous US FDA-compliant plants.

Why it Matters:

While the recalls present immediate challenges and potential financial setbacks, the long-term impact will depend on the companies' responses and ability to restore confidence in their products and manufacturing processes. Investors will be closely watching these developments to assess the future prospects of Lupin and Aurobindo Pharma.

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Around the World

Most Asian stocks fell on Monday, with Chinese markets leading the decline due to fears of a trade war with the European Union and concerns over upcoming U.S. inflation data. Chinese indexes, Shanghai Shenzhen CSI 300 and Shanghai Composite, dropped 0.4% and 0.8% respectively, dragging down Hong Kong's Hang Seng by 1%. This followed the EU's steep tariffs on Chinese electric vehicles, raising the risk of retaliatory measures from Beijing. Other markets affected included Australia’s ASX 200, down 0.6%, and South Korea’s KOSPI, down 0.9%. Japanese stocks rose slightly, with the Nikkei 225 and TOPIX up 0.3%, but investors are cautious about potential yen intervention. Overall, markets remain jittery ahead of U.S. inflation data, with India's Nifty 50 also expected to open weak after recent highs.

Option Traders Corner

Max Pain

Nifty 50 - 23,400

Bank Nifty - 51,300

Nifty 50 - 23,522 (Pivot)

Support - 23,377, 23,253, 23,108

Resistance - 23,646, 23,791, 23,914

Bank Nifty - 51,606 (Pivot)

Support - 51,279, 50,897, 50,570

Resistance - 51,988, 52,316, 52,698

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